Mumbai's east coast to become tourist hotspot

MUMBAI: Mumbai's inaccessible and deserted eastern waterfront could finally be opened to the city. With an ambitious makeover plan, Mumbai Port Trust hopes to convert the 28 kilometre coastline into a tourist hotspot and save its fortune amid declining business.

The plan envisages turning the land near the coast, owned largely by the Mumbai Port Trust and currently closed to the public, into revenue earning assets by developing water sports, opening heritage hotels, floating restaurants, bird watching galleries, among other things.

The coastline that runs from Colaba to Wadala and beyond can be a saving grace for Mumbai Port, which has been grappling with changing demand scenario and intense competition. The Port posted a loss of Rs 44 crore last year.

Through diversification into tourism, it wants to leverage is land bank of 720 hectares (1860 acres) and access to the sea. "We want to diversify our business. There is too much competition from other ports in Gujarat and elsewhere," Mumbai Port Trust chairman Rajeev Gupta told ET. "We want to have sustainable development. It will be a judicious balance between cargo activity and tourism."

Gupta said he plans to develop a convention centre at the little used cruise terminal, a maritime heritage museum and an art gallery at Sassoon Docks, a mall at Ferry Wharf, a heritage hotel at Gadhiyal Godi, and a bird watching gallery at Sewri Fort. "Our real estate has unlocked potential. We want to do this through lease agreements or public private partnership," Gupta added.

The port is targeting 30-40% of annual revenue coming out of the new recreation and tourism vertical in the next five years. Out of the 720 hectares that the port owns, about 400 hectares is being used for road, railways and port related work, while 300 hectares has long being leased out to government and private parties.

The port wants to free up 50 hectares of land for tourism and other activities. Mumbai Port Trust, whose history dates back to Britain's East India Company and has been known as the gateway of India for international trade and commerce, has been rapidly losing business to newer ports like Jawaharlal Nehru Port Trust and Adani Ports in Gujarat.

While demands to open the space to the city are not new, Mumbai Port earlier was not too keen to give up the land. Now few options remain. "It could translate into a revenue source. Mumbai Port has been losing non-captive cargo to competition," said Anand Sharma, director at Mantrana Maritime Advisory. "It is difficult to attract new cargo business because the port is surrounded by the city.

The cargo has to pass through the city and there are no free roads." Apart from developing the eastern coastline into a tourist attraction, Mumbai Port wants to lease some of its free land to construct a desalinisation plant and some to telecom companies to set up mobile towers, fibre optic line etc.

Most of the 300 hectare land on lease was given out on long-term periods decades ago, earning the port less than Rs 10 crore annually, a pittance compared with current market rates. The rest, which is in port's control, can be monetised.

The opening of Eastern Freeway has improved access to the area. "There is a huge potential to monetise the land, and if it is packaged well, there will be buyers. The land can fetch Rs 8,000-15,000 per square feet," said Subhankar Mitra, Head, Strategic Consulting (West) at property advisory firm Jones Lang LaSalle India.

But experts are skeptical of this ambitious plan that could alter the eastern skyline forever, given the port's past record on projects and government's slow approval process.